China's A shares feat continues, enters third quarter

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China's A shares have been holding the line through the third quarter of the year in the run-up to the stock market's nine-day National Holiday break.

While industry leaders continue to attract the most of the investment money, China's A-shares are also seeing a spurt in the number of smaller companies going public which focuses on advanced manufacturing and technology.

A-shares' total investment hit a 20-month-high last week, just a fraction below 1 trillion yuan. And the relatively high investment sentiment is being bolstered by price adjustments from upstream industries.

“China is undergoing a consumption upgrade and a manufacturing upgrade, and that means industry leaders have been performing really well,” said Ethan Wang, head of investment strategy of wealth management, Standard Chartered China.

That’s why the leading companies are drawing investors’ money in the stock market.

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As for smaller firms, the new stocks from non-financial industries are being preferred.

“There were 323 companies newly approved by the CRSC for IPOs as of the third quarter, and smaller firms took care of most of them, especially those in manufacturing and TMT as well as Belt and Road concepts,” said Tang Zhehui, assurance partner of EY, the multinational professional services firm headquartered in London.

Since the beginning of the year, the Shanghai Composite has gained around 10 percent and the CSI 300 is up over 15 percent.

There are currently 48 Internet of Things (IoT) concept stocks and nearly a hundred relating to new energy development on China’s A-share markets. Experts say those stocks are much likely to keep on gaining as China's consumption and manufacturing upgrades continue.